Elevance Health Reports Strong Second Quarter 2026 Results and Raises Full-Year Guidance

Elevance Health reported operating revenue of $49.8 billion for the second quarter of 2026, marking a modest increase of $0.4 billion compared to the same period last year. This growth was primarily driven by higher premium yields in the Health Benefits segment and growth in CarelonRx product revenue. However, the company experienced anticipated declines in its Medicare Advantage, Medicaid, and Employer Group risk membership, which partially offset these gains.

Earnings per diluted share (EPS) for the second quarter came in ahead of expectations, prompting Elevance to raise its adjusted EPS guidance for 2026 to at least $27.00. President and CEO Gail K. Boudreaux highlighted the company's commitment to enhancing its capabilities in medical cost management, member experience, provider connectivity, operating efficiency, and value-based solutions through Carelon. These targeted investments are expected to bolster operational consistency and reinforce the company’s confidence in achieving at least 12% adjusted EPS growth by 2027, based on the 2026 earnings baseline.

The consolidated financials for the second quarter reflect the following:

The increase in the benefit expense ratio to 89.7%, up 80 basis points year-over-year, was attributed to elevated medical cost trends within the Government segments.

The company reported operating cash flow of $1.9 billion, reflecting the strength of its underlying business operations, as well as timing factors related to Medicaid payments. As of June 30, 2026, Elevance Health held approximately $2.1 billion in cash and investments at the parent company level.

In a move to return value to shareholders, Elevance repurchased 0.7 million shares of its common stock at a total cost of $234 million during the quarter. Additionally, the company declared a quarterly dividend of $1.72 per share, which will be distributed on September 25, 2026, to shareholders on record by September 10, 2026.

The Health Benefits segment reported operating revenue of $42.7 billion, up $1.1 billion year-over-year, driven largely by higher premium yields. However, operating gain in this segment decreased to $0.9 billion, reflecting increased benefit expenses and investments aimed at workforce support and performance enhancement. Medical membership stood at approximately 44.9 million, a decrease of 469,000 from the previous quarter.

In the Carelon segment, operating revenue grew to $19.2 billion, an increase of $1.1 billion, or 6%, compared to the prior year quarter. This growth was largely attributed to scaling risk-based solutions and the success of CarelonRx products. The operating gain for Carelon remained steady at $0.9 billion, with an operating margin of 4.9%.

Elevance Health's second quarter results reflect a solid performance amid challenging market conditions. With the raised EPS guidance and a focus on strategic investments, the company is positioning itself for sustained growth. Elevance Health continues to demonstrate resilience and adaptability, making it a key player in the ever-evolving healthcare landscape.

For further insights and discussions, Elevance management will host a conference call and webcast today at 8:30 a.m. EDT, providing an opportunity for investors and analysts to delve deeper into the company's performance and future outlook.